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Confectionery Industry

In: Business and Management

Submitted By frosuk666
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The confectionery industry in the UK includes of selling of chocolate, cereal bar, gum, and sugar confectionery. The target of this report will focus on the Western Europe market which used in the data have been calculated using 2012, especially in the UK market . As the result of recent years, the UK confectionary industry has steady decreased in the value growth and marginal volume. It predicts to continue towards 2017.
According to Marketline (2012) determined that "The UK confectionery market had total revenues of £6.9bn with a compound annual growth rate of 2.1% between 2008 and 2012. In comparison, the French and German markets grew with CAGRs of 2.2% and 1.7% respectively, over the same period, to reach respective values of £4.29bn and £6.9bn in 2012".
Beside this, the mass of the market consumption was dropped with a compound rate of change -0.3% between 2008 and 2012 as the total of 867.5 million kg in 2012. This is forecast to fall to 857.2 million kg by the end of 2017 about -0.2% of a compound annual rate of change.
In the segmentation of this market, the chocolate segment is the largest of confectionery in the UK, about 69.5% of the market total value. The sugar confectionery segment is in accounts about 16.3% of the market. And the cereal bars and gum have the same amount of total value about 7.1%
Analyse
The UK confectionery market is concentrated, with the top three players holding 70.5% of the total market value. The presence of large players such as Mondelez International Inc. , Mars, Inc. and Nestle S.A. makes it difficult for smaller players to compete and this intensified rivalry. The market has a wide range of products, differentiated both by their inherent characteristics and by investment in branding. A variety of brands are available and products can also be differentiated with respect to quality and price. Consequently, buyer power

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